By RODDY BOYD ----------------------------------------------- If the National Association of Securities Dealers has its way, the naked shorts will be forced to cover up. The NASD has requested data from the stock-lending operations of Wall Street giants in a bid to get to the bottom of what one regulator has called an epidemic of so-called naked shorting.
The requests went out to dealers large and small, from Morgan Stanley to Janney Montgomery Scott.
Naked shorting occurs when a short seller hoping to profit from a decline in a stock's price fails to borrow shares prior to establishing the position.
The practice has the potential...
Posts: 88 | From: US | Registered: Sep 2005
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posted
love to see that link, and when it was written. Hopefully recently.
-------------------- Do you know what "nemesis" means? A righteous infliction of retribution manifested by an appropriate agent. Personified in this case by an 'orrible 'unt... me. -Brick Top Posts: 746 | From: Pawtucket, MA | Registered: Jan 2005
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9-8-5 It's archived at the NY post, can't get the whole article. Here is a copy from another board, I believe it's complete.
NASD IS PROBING NAKED SHORT SALES
By RODDY BOYD NY Post
September 8, 2005 -- If the National Association of Securities Dealers has its way, the naked shorts will be forced to cover up. The NASD has requested data from the stock-lending operations of Wall Street giants in a bid to get to the bottom of what one regulator has called an epidemic of so-called naked shorting.
The requests went out to dealers large and small, from Morgan Stanley to Janney Montgomery Scott.
Naked shorting occurs when a short seller hoping to profit from a decline in a stock's price fails to borrow shares prior to establishing the position.
The practice has the potential to swamp thinly traded stocks with sell orders; numerous companies have argued that naked shorting has forced their stock prices below minimum listing requirements.
While always technically illegal, the Securities and Exchange Commission enacted Regulation SHO in January to curb the practice once and for all.
One individual at a large Wall Street firm that received the NASD's request said that it focused on stock loans resulting in trades that do not settle properly.
Regulators and anti-naked shorting advocates argue that dealers lend out more shares than are publicly available to trade.
An SEC official confirmed that no complaints have been brought in the nine months since Regulation SHO went into effect.
One avenue where additional pressure will be put on the Feds to act is the state level.
Ralph Lambiase, the head of the Connecticut division of securities and business investments, is said to be heading up an 11-state task force designed to crack down on the practice.
The task force, under the auspices of the North American Securities Administrators Association, and consisting of state securities regulators from all 50 states and Canada, is plotting strategy in meetings this week.
One state securities regulator, Bill Reilly of Florida, said he expected the increased effort would result in more voluntary compliance from dealers, as well as enforcement activity.
-------------------- ......in Psychiatry circles it's known as a "warning sign" Posts: 1736 | From: Saint Louis | Registered: Jul 2005
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my DD points to them (or insiders, hedge funds, working hand in hand with them)as the main culprits...
BUT,
did you ever wonder why you have to have a margin account to trade with YOUR money before the three day settlement?
by setting up a margin aco**** you are allowing them to run it like a slush fund...
i've been playing the pennies long enough to see that 99.9% of these end up right back where they started after a run... the dealers know that too....
i watched every single trade for weeks on end of 2 real standouts this year that were so obviously being manipulated i couldn't believe they were getting away it.. SMTR ran GREEN hard while it was on the SHO list.. the other one was MSEP
they just kept selling naked shorts till everybody ran out of interest.... then they bought 'em back cheap....
the dealers claim not to know what is going on, but if you go to the DTCC web page and read about how they work? you'll soon realise that the DTCC is the dealers..... and they are the bank.....
Contact: Edward C. Kelleher Phone: +1 212 855-5301 Email: eckelleher@dtcc.com
DTCC WILL AUTOMATE AND STREAMLINE BUY-IN NOTIFICATION FOR SECURITIES
New York, September 14, 2005 – The Depository Trust & Clearing Corporation (DTCC) has developed a new Web-based system that will standardize and automate the creation, delivery and tracking of buy-in notices for the securities industry and provide a single point of entry for brokers sending or receiving buy-in notices.
The new service, offered through The Depository Trust Company (DTC), a subsidiary of DTCC, is called SMART/Track for Buy-ins and improves upon an earlier DTC system, the Participant Exchange (PEX) service, which was a messaging facility only for buy-ins. The new service is subject to regulatory approval.
posted
Glass are you trying to say the big boys are rigging the system in their favor????...lol
-------------------- "keep your stick on the ice & your cup firmly in place" Posts: 3651 | From: Algonac, MI. 48001 | Registered: Jun 2004
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if you dig thru those web pages and read the annual report? you will see that they completed a QUADRILLION dollars worth of transactions in 2004....
the files are PDF or i would post a few choice excerpts...
basically they claim to be totally reliable, but we all know there are serious exceptions to that rule...
my issues are only with getting what is advertised.... the markets should be determined by supply and demand.... they aren't... there appears to be an unlimited supply of some stocks at certain times.....
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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i was amused when a broker told me they only charge 7$ a trade and they can't possibly give full service to us customers at that price...
i asked him, "and how many trades per hour do you all "process"? a million? 2 million?" LOL.....
they want it both ways...
all i ever asked for was a level playing field and a square deal, no more, no less, and it seems they have rules that are "adjustable" to meet the situation...
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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